Core Insights - Figma and Autodesk are both design software providers but operate in different markets, with Figma focusing on collaborative digital product design and Autodesk on engineering and industrial design software [1] - Both companies are integrating AI into their platforms to enhance value creation, with Figma aiming to boost creative productivity and user adoption, while Autodesk focuses on engineering optimization and risk reduction [1] Figma Overview - Figma is heavily investing in AI features to enhance its product suite, including the integration of Gemini 3 Pro and Nano Banana Pro for AI image generation and editing [3] - The collaboration with OpenAI allows users to generate FigJam diagrams from ChatGPT conversations, enhancing user experience [4] - Figma's acquisition of Weavy enables users to access leading AI models and editing tools on a single platform, making it competitive in the image editing market [5] - As of September 30, 2025, Figma had 12,910 paid customers with over $10,000 in annual recurring revenues (ARR) and 1,262 customers with over $100,000 in ARR, achieving a net dollar retention rate of 131% for high-spending customers [6] - Despite growth, Figma's non-GAAP operating profit decreased by 28.9% year-over-year to $34.02 million, with the operating profit margin dropping from 24% to 12% due to cost pressures from new AI features [7] Autodesk Overview - Autodesk leverages decades of proprietary data to train its AI models, integrating generative design and predictive analytics to enhance productivity [9] - The company reports significant adoption of AI tools across its platforms, with over 2.6 million constraints delivered by its AI-based Sketch AutoConstrain feature [10] - Autodesk is positioned to benefit from AI monetization and subscription revenues, although it faces high costs related to cloud infrastructure and talent acquisition [11] - Research and development costs remain high as Autodesk seeks to maintain its competitive edge, alongside increasing sales and marketing expenditures [12] - Autodesk's fiscal 2026 earnings are projected to grow by 20.5% year-over-year, with recent estimates revised upward [13] Comparative Analysis - In the last three months, Figma shares have declined by 25.7%, while Autodesk shares have decreased by 5.4% [14] - Autodesk's larger scale and market capitalization provide it with a better position to absorb cost pressures and monetize investments, making it a comparatively safer investment during the current AI growth phase [15] - Figma trades at a forward 12-month price-to-sales (P/S) multiple of 12.51X, which is higher than Autodesk's 8.12X [16]

Summary of Autodesk FY Conference Call Company Overview - **Company**: Autodesk (NasdaqGS:ADSK) - **Event**: FY Conference on December 10, 2025 Key Points Industry Performance - Autodesk's business is performing well in absolute terms and compared to competitors [8][9][10] - The company is years ahead of competitors in AI development [12] Financial Guidance and Models - Guidance for fiscal 2029 goals will be influenced by macroeconomic factors and sales/marketing optimization [8] - Transition to a new transaction model will create incremental headwinds for margins, making the path to fiscal 2029 non-linear [9] - The switch to annual billing has provided a tailwind for billings and free cash flow growth in fiscal 2025 and 2026, but growth will normalize in fiscal 2027 [10] AI and Technology Development - Autodesk Research, a 300-person organization, focuses on staying 5 to 10 years ahead in technology, including AI and robotics [17][20] - The AI lab was established in 2018, focusing on geometry and structures relevant to Autodesk's customers [20] - The cycle time between research and product development has significantly decreased, now taking 3 to 6 months [21][24] Generative AI Impact on Architecture - Generative AI will radically change architecture through: 1. **Outcome-based design**: AI helps in conceptual design by simulating project goals early [35] 2. **Improved communication**: AI facilitates better interaction between architects and engineers [39] 3. **Automation of repetitive tasks**: AI can automate 70%-80% of design work, freeing up time for creative tasks [40][45] Economic Considerations - The seat-based model will remain relevant due to a mismatch between available work and workforce [49] - Expansion into adjacent verticals will increase the addressable ecosystem [51] - AI will enhance productivity, potentially leading to fewer seats but greater value for Autodesk [46][52] Construction Cloud Growth - Autodesk Construction Cloud (ACC) is gaining market share due to strategic acquisitions and re-platforming efforts [88][90] - The integration of design and construction workflows is a key strategy for growth [92] AI in Construction - AI tools like Construction IQ help manage vast amounts of data on construction sites, predicting issues and improving efficiency [101][103] - AI can provide early simulations to avoid costly problems later in the construction process [106] Revenue and Margin Outlook - The transition to the new transaction model will have a cumulative impact on margins, with the most significant effects expected in fiscal 2027 [161][162] - Billings and revenue growth are expected to align more closely post-transition [178] Future Innovations - Autodesk aims to create a vibrant ecosystem of AI tools for architects and engineers, enhancing efficiency and product quality [200] Investment Focus - Continued investment in platform development, data systems, and AI capabilities is crucial for future growth [141][145][155] Additional Insights - The company emphasizes the importance of centralization in AI investments to avoid inefficiencies [26] - Autodesk is preparing for a shift towards consumption-based pricing models as AI capabilities expand [52][62] This summary captures the essential insights from the Autodesk FY Conference, highlighting the company's strategic direction, technological advancements, and market positioning.

Core Insights - Autodesk Inc. has shown strong operating consistency and is expected to sustain low-teens growth, supported by solid demand visibility and improved margins [1][2] - The company reported third-quarter fiscal 2026 results with an 18% constant-currency revenue growth, reaching $1.85 billion, and an adjusted EPS of $2.67 [2][3] - For the fourth quarter, Autodesk is guiding for approximately 11% adjusted revenue growth and 18% adjusted billings growth [2][3] Financial Performance - The company increased its fiscal 2026 operating margin guidance by 50 basis points to 37.5%, indicating strengthened margin performance due to efficiency improvements [4] - The demand momentum remains intact, with expectations that billings growth will initially remain elevated before normalizing [3][4] Analyst Perspective - UBS analyst Taylor McGinnis raised the price target for Autodesk from $385 to $400 while maintaining a Buy rating, reflecting confidence in the company's growth potential [1] - The analyst's review of the third-quarter results suggests that Autodesk's operational performance is robust and well-positioned for future growth [3][4]

Summary of Autodesk Q3 2025 Conference Call Company Overview - **Company**: Autodesk (NasdaqGS:ADSK) - **Date of Conference**: December 02, 2025 Key Points Industry and Market Performance - **Strong Q3 Results**: Autodesk reported strong performance in Q3, with continued momentum from the first half of the year, particularly in data centers, industrial, and infrastructure sectors [2][3] - **Geographic Strength**: Notable growth was observed in various regions, especially in emerging markets [2] - **Diversification and Resilience**: The company emphasized the diversification built over the years, contributing to consistent growth and resilience in the business [3][5] Growth Drivers and Future Outlook - **Capacity Constraints**: Autodesk highlighted a significant capacity constraint in the market, indicating that customers need more capacity to execute projects efficiently [7][8] - **Incremental Capacity through Automation**: The company plans to add capacity through automation, particularly in construction and manufacturing sectors, which are expected to provide durable growth opportunities [9][10] - **AI Integration**: Autodesk is focusing on AI initiatives, including task and workflow automation, to enhance productivity and customer satisfaction [19][20] Financial Guidance and Revenue Model - **Guidance for Q4 and Beyond**: Autodesk raised its guidance for Q4 and expressed confidence in sustaining growth into fiscal 2027, driven by consistent performance and ongoing go-to-market optimization [3][14] - **Revenue Growth Areas**: Key areas for growth include construction, Fusion (a manufacturing application), and infrastructure projects, with expectations of continued strong performance [13][14][42] Go-to-Market Strategy - **Transition to Self-Service**: Autodesk is transitioning to a self-service model, which is expected to enhance customer engagement and streamline renewals [61][64] - **Partner Compensation Changes**: Changes in partner compensation structures are being implemented to incentivize new business generation over renewals [64][66] Data and Cloud Strategy - **Importance of Data Layer**: The data flow is crucial for connecting various processes from design to operations, facilitating automation and enhancing customer value [30][31] - **SaaS Adoption**: Autodesk is witnessing rapid growth in its SaaS offerings, with a significant shift towards cloud-based solutions, which is essential for future AI and automation initiatives [32][34] Operational Efficiency and Margins - **Operating Margin Targets**: Autodesk aims for adjusted operating margins of 41%-45%, with expectations of non-linear growth due to ongoing optimization and inherent operating leverage [72][78] - **Pricing Strategy**: The company is considering pricing adjustments based on value delivered, with potential for new monetization models, especially in AI [80][84] Customer Sentiment and Spending - **Consistent Customer Investment**: Customer sentiment remains positive, with no downsizing of Enterprise Business Agreements (EBAs) and indications of consistent technology investment heading into the next year [48][49] Conclusion - Autodesk is positioned for continued growth through strategic focus on automation, AI integration, and a robust go-to-market strategy, while navigating macroeconomic uncertainties and optimizing its operational efficiencies. The emphasis on cloud solutions and data management is expected to drive future opportunities across various sectors.

Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [8] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 and 120 basis points [10] - Third quarter free cash flow was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers and infrastructure, offsetting softness in commercial [7] - The Autodesk Construction Cloud is gaining momentum, with significant migrations from competitors, indicating strong demand for integrated solutions [17][18] Market Data and Key Metrics Changes - The macroeconomic environment appears broadly stable, but uncertainty remains elevated, impacting guidance for fiscal 2027 [12] - The company is seeing strong engagement from customers, particularly in the AECO sector, with continued investment in digital infrastructure [59] Company Strategy and Development Direction - Autodesk is focused on the convergence of design and make in the cloud, leveraging AI and industry clouds to enhance product offerings and customer value [15][16] - The company aims to redefine its business model and go-to-market strategies, positioning itself for long-term growth and margin expansion [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and macroeconomic uncertainties while executing on strategic initiatives [4] - The company has raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [12][13] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [13] - Autodesk is integrating AI capabilities deeply into its products, enhancing customer workflows and driving productivity [16][20] Q&A Session Summary Question: Insights on seats versus consumption AI monetization - Management highlighted a capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][27] Question: Fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [31] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of their platform [35][37] Question: AI capabilities and their impact on retention and pricing power - Management confirmed that AI-driven capabilities are enhancing customer satisfaction and retention, with potential for incremental monetization opportunities [67][69] Question: Channel productivity and operational elements - Management stated that operational friction from the new transaction model is being addressed, and partners are beginning to see improved productivity [89][90]

Core Insights - Autodesk reported a third quarter revenue growth of 18% year-over-year, reaching $1.85 billion, with a constant currency growth also at 18% [1][3] - The company is focusing on defining the AI revolution in design and manufacturing, enhancing customer workflows through automation, and optimizing its sales and marketing strategies [2][3] - Autodesk raised its full-year guidance due to strong business momentum, particularly in the AECO (Architecture, Engineering, Construction, and Operations) sector [2] Financial Performance - Billings for Q3 FY26 were $1.855 billion, reflecting a 21% year-over-year increase [3] - GAAP operating margin improved to 25%, up 3 percentage points from the previous year, while non-GAAP operating margin was 38%, up 1 percentage point [3] - GAAP EPS was reported at $1.60, an increase of $0.33 year-over-year, and non-GAAP EPS was $2.67, up by $0.50 [3] Revenue Breakdown - Total net revenue was $1.853 billion, with the design segment contributing $1.537 billion (19% growth), the make segment at $205 million (20% growth), and other revenues at $111 million (7% growth) [4] - Geographic revenue distribution showed the Americas at $820 million (16% growth), EMEA at $715 million (23% growth), and APAC at $318 million (12% growth) [6] Product Family Performance - The AECO product family generated $921 million in revenue, marking a 23% increase year-over-year [8] - AutoCAD and AutoCAD LT contributed $458 million, with a 15% growth, while the manufacturing segment generated $355 million, reflecting a 16% increase [8] Future Outlook - For Q4 FY26, Autodesk projects revenue between $1.901 billion and $1.917 billion, with GAAP EPS expected to be between $1.40 and $1.57 [11] - Full-year FY26 guidance estimates billings between $7.465 billion and $7.525 billion, with total revenue projected between $7.150 billion and $7.165 billion [12][14]

Core Insights - Autodesk (NASDAQ: ADSK) is set to announce its earnings on November 25, 2025, with a current market capitalization of $62 billion [2] - The company reported revenue of $6.6 billion over the past twelve months, achieving operational profitability with $1.5 billion in operating profits and a net income of $1.0 billion [2] - The stock's reaction post-earnings will depend on the alignment of results and predictions with investor expectations, suggesting the importance of analyzing past performance for event-driven trading [2] Historical Performance - Over the past five years, Autodesk has recorded 19 earnings data points, resulting in 10 positive and 9 negative one-day (1D) returns, indicating a 53% chance of positive returns [7] - This percentage increases to 64% when considering data from the last three years [7] - The median of the 10 positive returns is 1.4%, while the median of the 9 negative returns is -6.9% [7] Trading Strategies - Investors can prepare for earnings announcements by understanding historical probabilities and positioning themselves accordingly [3] - Analyzing the correlation between short-term (1D) and medium-term (5D) returns can inform trading strategies, particularly if a strong correlation is identified [5][6]

Company Overview - Autodesk, Inc. (ADSK) has a market cap of $63.8 billion and specializes in design, engineering, and digital content creation tools, serving various industries including architecture, construction, manufacturing, product design, and media/entertainment [1] Stock Performance - Over the past 52 weeks, ADSK stock has increased by 2.4%, underperforming the S&P 500 Index, which rose by 13.2% [2] - Year-to-date, ADSK shares are up 1.3%, lagging behind the S&P 500's 14.5% gain [2] - The stock has also underperformed compared to the Technology Select Sector SPDR Fund (XLK), which returned 22.9% over the same period [3] Investor Sentiment and Challenges - Concerns around profitability, capital efficiency, and strategic uncertainty have contributed to Autodesk's stock lagging behind the market [4] - The company has faced margin pressure, slower-than-expected Annual Recurring Revenue (ARR) growth, and high customer acquisition costs, raising questions about its operating efficiency [4] - Activist pressure from Starboard Value has also impacted investor sentiment, challenging Autodesk's spending discipline and governance [4] Earnings Expectations - For the fiscal year ending in January 2026, analysts expect Autodesk's EPS to grow by 17.8% year-over-year to $6.90 [5] - The company's earnings surprise history is mixed, with three beats and one miss in the last four quarters [5] Analyst Ratings - Among 26 analysts covering Autodesk, the consensus rating is a "Strong Buy," with 18 "Strong Buy" ratings, one "Moderate Buy," and seven "Holds" [5] - The current configuration shows a decrease in "Strong Buy" ratings from 19 two months ago [6] - RBC Capital analyst Matthew Hedberg reaffirmed a "Buy" rating on Autodesk, with a mean price target of $365.36, indicating a 17.7% premium to current price levels, and a Street-high price target of $393 suggesting a 30.3% potential upside [6]

Core Insights - The comparison between Intuit (INTU) and Autodesk (ADSK) indicates that INTU stock may present a more favorable investment opportunity due to its valuation relative to ADSK stock [3][7] - Both companies operate in the software sector, focusing on different markets, with INTU specializing in financial software and Autodesk in design and engineering tools [3][4] - Both companies share similarities such as strong subscription-based business models and a focus on AI-driven automation and cloud services, which are crucial for navigating current market challenges [4] Financial Metrics Comparison - INTU exhibits a more favorable Price to Operating Income (P/OpInc) ratio compared to Autodesk, suggesting better valuation [7] - Despite the favorable valuation, Autodesk shows greater revenue and operating income growth, which may indicate underlying strengths in its business model [7] - A year-over-year analysis of key metrics is essential to determine if Autodesk's stock is overpriced, with ongoing underperformance in revenue and operating income growth supporting the notion of overvaluation [9][10] Investment Strategy Insights - The Trefis High Quality Portfolio employs a multi-factor approach to assess investments, aiming to mitigate stock-specific risks while providing potential upside [8][10] - The performance of the Trefis HQ Portfolio has outperformed the S&P, achieving returns exceeding 105% since its inception, highlighting the effectiveness of diversified investment strategies [10]

Financial Data and Key Metrics Changes - InMode generated revenues of $93.2 million in Q3 2025, down from $130.2 million in Q3 2024, which included $31.9 million in pre-order sales [6][7] - Consumables and service revenues were $19.9 million, up 26% year-over-year, driven primarily by markets outside the U.S. [6][7] - GAAP gross margins were 78%, down from 82% in Q3 2024, attributed to the impact of tariffs [7][8] - GAAP net income was $21.8 million, down from $50.9 million in Q3 2024, with diluted earnings per share at $0.34, down from $0.65 [9][10] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 75% of total revenues this quarter [7] - Sales outside the U.S. increased slightly to $40 million, or 43% of overall sales, a 10% increase year-over-year [7] - Sales and marketing expenses decreased to $44.9 million from $51.9 million in the same period last year [8] Market Data and Key Metrics Changes - The U.S. was the largest geographical revenue contributor, reaching $53.2 million [7] - The company currently has 284 direct sales reps and distributors covering more than 73 countries [8] Company Strategy and Development Direction - The company is focused on expanding its presence in high-growth markets, recently opening a new subsidiary in Argentina [3][4] - A new leadership addition, Michael Denison, was appointed as President of North America to streamline operations [5][28] - The company aims to launch new products in the aesthetic segment in early 2026, including new lasers [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the marketplace but expressed confidence in the company's competitive advantages and strong financial position [5] - The company plans to remain conservative in its guidance for 2026 due to uncertainties in the market [14][16] Other Important Information - The company expects to begin generating initial revenue from its new subsidiary in Argentina by the end of 2025 [4] - Non-GAAP gross margins are expected to remain between 78%-80% for 2025 [10] Q&A Session Summary Question: Guidance for Q4 and 2026 sales growth - Management indicated it is too early to discuss guidance for 2026 and prefers to see how Q4 plays out first [14] Question: Capital equipment environment and interest rates - Management noted that while interest rates have come down, it has not yet significantly impacted capital equipment financing [16][17] Question: Updates on ophthalmology initiative - The company is separating sales teams for the Envision initiative and has made progress with the American Optometrist Association [20][21] Question: New product pipeline in aesthetics - New lasers complementary to the aesthetic portfolio are expected to be launched in early 2026 [26] Question: Rationale for appointing Michael Denison - Denison was chosen for his extensive experience and knowledge of the market, aiming to unify North American operations under one management [28][29] Question: Urology business expectations - The company is launching urology products and will assess their performance by the end of the year [30] Question: Strength in OUS business and future trends - The company is currently selling in 88 to 90 countries and does not plan to add more countries in 2025 [33][34] Question: Non-invasive growth and consumables - The company sold about 230,000 disposable handpieces in Q3 2025, indicating a sequential increase [41]